Your co-workers gawk as you sweat and continually look up at your screen. You can't hide the fact that you are stressed-the-you-know-what-out.
Why are you stressed?
It's because that stock you entered moved 20 cents below your entry and is now forming a bearish engulfing pattern.
Sounds bad huh? I forgot to mention that you are swing trading this stock for a $10 gain, your stock has moved 20 freakin' cents and that bearish wedge . . . it's on that 2 minute chart you keep peaking at when you should be trading off the daily.
Yeah, that daily. The one that is a 330 minute chart.
Look, I've been there. It's tough to enter a swing trade and not monitor it. It's human nature and we all do it. However, we must fight ourselves from doing this, because it inevitably leads to micro-managing positions, which is the death knell for swing traders.
That is why I constantly preach the mantra of "set it and forget it".
One of my mentorees just witnessed the power of set it and forget it first hand. I got this email from him today:
He "almost tapped out" is trader code for "gave up on the trade before hitting his stop or target." In the past, he would have. But now SB has seen the light.
Set it and forget it
A lot of hard work went into your entry, stop and target levels. Hours of experience in pattern recognition, sector analysis, trader psychology, risk analysis and support and resistance levels went into that trade you just put on. Now it is time to enjoy the fruits of your labor by "setting it and forgetting it".
If you have managed your risk right, what's the worst that can happen? You'll take a small loss and move on to the next trade.
See, trading can be as easy or hard as our minds make it out to be. Make it easy. Set it and forget it.
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3 comments:
I know how to set up a stop loss on a trade . But is there a way to do both a stop out and a target price out
I know how to set up a stop loss on a trade . But is there a way to do both a stop out and a target price out
This post helped me in learning good facts related to trading in stock market. To become a successful trader learning is must. Traders can follow epic research to learn live updates on stock market.
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